Consider a 20-year, $180,000 mortgage with a rate of 6.3 percent. Four years into the mortgage, rates have fallen to 5 percent.Suppose the transaction cost of obtaining a new mortgage is $1,900.a. Should the homeowner refinance at the lower rate?YesNob. Quantify the effect of the homeowner's decision.Note: Do not round intermediate calculations. Round your answer to 2 decimal places.Answer is complete but not entirely correct.Monthly savingsS 92.33

Answered: Image /qna-images/answer/56470ca3-1c53-4c59-a35b-7b8ec5e031c5.jpg

hould the homeowner refinance at the lower rate? Yes No quantify the effect of the homeowner's decision. ote: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Monthly savings s 92.33

hould the homeowner refinance at the lower rate? Yes No quantify the effect of the homeowner's decision. ote: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Monthly savings s 92.33

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Savings Plans, Part 1: Frequency of Deposits for Annuities For this problem, you will be looking at the difference that the frequency of deposits and compounding makes on annuities. For all answers given as values of money, round down to the cent. For answers in percents, round to the tenth of a percent. 1. Make a table that shows how much money each person has in their annuity after 1 year, 5 years, 10 years, and 25 years. Calculate how much money each person has invested after 25 years, and how much interest they have earned after 25 years. Then express the interest earned after 25 years as a percent of the amount invested. a. Avery invests $3120 per year in an annuity with a 3.9% APR, compounded annually. b. Britt invests $780 per quarter in an annuity with a 3.9% APR, compounded quarterly. c. Casey invests $260 per month in an annuity that earns 3.9% APR, compounded monthly. d. Devyn invests $60 per week in an annuity that earns 3.9% APR, compounded weekly. (Use 52 weeks…
TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 7.50% 8% 8.50% 9% 10.00% 10.50% 11.00% 11.50% 12.00% 6. $170.34 $170.58 $170.83 $171.20 $171.56 $171.81 $172.05 $172.30 $172.55 12 86.76 86.99 87.22 87.46 87.92 88.15 88.38 88.62 88.85 18 58.92 59.15 59.37 59.60 60.06 60.29 60.52 60.75 60.98 24 45.00 45.23 45.46 45.69 46.14 46.38 46.61 46.84 47.07 30 36.66 36.89 37.12 37.35 37.81 38.04 38.28 38.51 38.75 36 31.11 31.34 31.57 31.80 32.27 32.50 32.74 32.98 33.21 42 27.15 27.38 27.62 27.85 28.32 28.55 28.79 29.03 29.28 48 24.18 24.42 24.65 24.77 25.36 25.60 25.85 26.09 26.33 54 21.88 22.12 22.36 22.59 23.07 23.32 23.56 23.81 24.06 60 20.04 20.28 20.52 20.76 21.25 21.49 21.74 21.99 22.24 TABLE 14.2 (concluded) Terms in months 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% $172.80 $173.04 $173.29 $173.54 $173.79 $174.03 $174.28 $174.53 9. 89.55 89.79 90.02 90.26 90.49 90.73 12 89.08 89.32 61.68 61.92…
(1)If compounding monthly, how would I find percent and intrest of a problem? (2) How do I compute if I paid $5 weekly for cofee and $175 monthly for food? What percentage of coffe did I pay over food? (3) suppose you start saving today for a $45,000 down payment that you plan to make on a house in 6 years. Assume you make no deposits in the account after initial deposit. For the account below, how much would you have to deposit now to reach $45000 in 6 years : an account with daily compounding and apr of 7%
Give answer with proper explanation please. Hand written solutions are strictly prohibited.
g. Living Expenses: Assume reasonable values for your living expenses. (You may adjust these numbers to fit your estimated costs, but a good starting point for monthly costs are Utilities: $150, TV: $40, Internet: $30, Cell Phone: $40, Phone: $40) You should also include estimates for food, gas, entertainment, and any other expense you can think of. What is your monthly payment for all of your living expenses?
eck my work mode : This shows what is correct or incorrect for the work you have completed so Drill Problem 13-3 (Algo) [LU 13-1 (2)] Complete the ordinary annuity as an annuity due (future value) for the following: (Please use Table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) XAnswer is complete but not entirely correct. Amount of Payment payable Interest rate payment Years Annuity due 4,900 Annually 14 4. 89,630.36 X Drov %24 %24
Do not provide solution in imge format. and also do not provide plagarised content otherwise i dislike
Question Completion Status: A Moving to another question will save this response. Question 2 The concept of time is money is having the following concept, except: O Compound Interest O Simple Interest Discounting Method Ordinary annuity due Moving to another question will save this response. Type here to search C C
please solve it mannualy do not use excel Assignment Problem 1(Page 132, question 22).An annuity consists of 40 payments of$300 each made at intervals of 3 months. Interest is atj1= 4.5%. Determine the value ofthis annuity at each of the following times:a. 3 months before the time of the first payments;b. at the time of the last payments;c. at the time of the first payment;d. 3 months after the last payment;e. 4 years and 3 months before the first payment.
Compute the cost of not taking the following cash discounts. Note: Use a 360-day year. Do not round intermediate calculations. Input your final answers as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Cost of Lost Discount 22.11% 18.71% 40.51% 157.41% a. 2/11, net 50 b. 2/17, net 50 c. 4/15, net 50 d. 4/19, net 155
I keep getting EAR wrong
Plcase view the following video before answering this question. Video Solution: 03.01-PRO05 Click here to access the TVM Factor Tabic Calculator Consider the following two cash flow series of payments: Series A is a geometric series increasing at a rate of 4.5% per year. The initial cash payment at the end of year 1 is $1,000. The payments occur annually for 5 years. Scries Bis a uniform series with payments of value X occurring annually at the end of years 1 through 5. You must make the payments in either Series A or Serics B.

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